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Vietnam races against time to meet public investment disbursement targets

The Saigon Times

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HCMC – As the year draws to a close, Vietnam is intensifying efforts to accelerate the disbursement of public investment funds.

Public investment plays a crucial role in driving economic recovery and growth in 2023, and while there are positive trends, further action is required to achieve optimal results.

According to the Ministry of Planning and Investment, December 10 marked the deadline for ministries, sectors, and localities to allocate the entire planned public investment for 2023. Of the VND708.25 trillion planned from the state budget, over VND19.2 trillion (2.7% of the plan) had remained unallocated as of the end of November.

The unallocated funds consist of VND10.26 trillion from the central budget and VND9 trillion from local budgets. The ministry attributed the delays to various new projects initiated in 2023, including those under the economic and social development recovery program.

Incomplete investment procedures and insufficient revenue from land use and lottery proceeds in certain areas have hindered resource allocation.

Despite the positive disbursement trends, challenges persist. As of November 30, public investment disbursement had reached nearly VND461 trillion, equivalent to 65.1% of the prime minister’s assigned plan. November alone witnessed disbursements of VND71.3 trillion, surpassing the 11-month average of VND41.9 trillion per month.

The disbursement of the 2023 economic and social development recovery program had reached VND62.92 trillion by the end of November.

However, time is running out, with around VND247 trillion still unallocated, or 35% of the prime minister’s plan. The ministry underscores the urgency of overcoming obstacles to meet the remaining disbursement targets and has called on 15 ministries and central agencies with low disbursement rates to expedite the process.

“A 95% disbursement of the total public investment could boost the entire social investment by 13.2%, contributing 2% to GDP growth in 2023,” said Nguyen Bich Lam, former director general of the General Statistics Office.

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